by Marcos Ramirez https://padlet.com/marcosramirez01/5ixjlmjslyph en-us 2019-02-28 22:58:48 UTC 2019-02-28 23:09:49 UTC hello@padlet.com What role does the government play in managing the economy? marcosramirez01 https://padlet.com/marcosramirez01/5ixjlmjslyph/wish/336678138 2019-02-28 22:59:39 UTC https://padlet.com/marcosramirez01/5ixjlmjslyph/wish/336678138 marcosramirez01 https://padlet.com/marcosramirez01/5ixjlmjslyph/wish/336678588  In the United States, the government influences economic activity through two approaches: monetary policy and fiscal policy. ]]> 2019-02-28 23:02:03 UTC https://padlet.com/marcosramirez01/5ixjlmjslyph/wish/336678588 marcosramirez01 https://padlet.com/marcosramirez01/5ixjlmjslyph/wish/336678888 Through monetary policy, the government exerts its power to regulate the money supply and level of interest rates.]]> 2019-02-28 23:03:44 UTC https://padlet.com/marcosramirez01/5ixjlmjslyph/wish/336678888 marcosramirez01 https://padlet.com/marcosramirez01/5ixjlmjslyph/wish/336678936  Through fiscal policy, it uses its power to tax and to spend.]]> 2019-02-28 23:03:59 UTC https://padlet.com/marcosramirez01/5ixjlmjslyph/wish/336678936 marcosramirez01 https://padlet.com/marcosramirez01/5ixjlmjslyph/wish/336679115  When the Fed believes that inflation is a problem, it will use contractionary policy to decrease the money supply and raise interest rates. ]]> 2019-02-28 23:04:58 UTC https://padlet.com/marcosramirez01/5ixjlmjslyph/wish/336679115 marcosramirez01 https://padlet.com/marcosramirez01/5ixjlmjslyph/wish/336679791 Both taxation and government spending can be used to reduce or increase the total supply of money in the economy—the total amount, in other words, that businesses and consumers have to spend. ]]> 2019-02-28 23:08:10 UTC https://padlet.com/marcosramirez01/5ixjlmjslyph/wish/336679791 marcosramirez01 https://padlet.com/marcosramirez01/5ixjlmjslyph/wish/336679986 When the country is in a recession, the appropriate policy is to increase spending, reduce taxes, or both.]]> 2019-02-28 23:09:05 UTC https://padlet.com/marcosramirez01/5ixjlmjslyph/wish/336679986 marcosramirez01 https://padlet.com/marcosramirez01/5ixjlmjslyph/wish/336680119 The cumulative sum of deficits is the national debt the total amount of money owed by the federal government.

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